The International Convention on Arrest of Ships, 1999

The International Convention on Arrest of Ships, 1999 (the “Arrest Convention”) provides a standardized international framework for the judicial arrest of ships for maritime claims. It aims to balance the interests of claimants seeking security for their claims with the interests of shipowners who may face significant disruption due to arrest. Here are the salient features of this convention:

Core Principles:

• Right of Arrest: The Convention establishes the circumstances under which a ship can be judicially arrested in a contracting state to secure a maritime claim against the shipowner or other responsible party.
• Maritime Claims: Article 1 exhaustively lists the categories of “maritime claims” for which a ship can be arrested. These include claims relating to:
  • Loss of life or personal injury occurring in connection with the operation of the ship.
  • Loss of or damage to property occurring in connection with the operation of the ship.
  • Salvage operations.
  • Pollution damage.
  • Towage.
  • Pilotage.
  • Goods, materials, provisions, bunkers, equipment supplied or services rendered to the ship for its operation, management, preservation, or maintenance.
  • Construction, reconstruction, repair, converting, or equipping of the ship.
  • Port, canal, dock, harbor, and other waterway dues and charges.
  • Wages and other sums due to the master, officers, and crew.
  • Disbursements made on account of the ship by or on behalf of the master, owner, or charterer.
  • Insurance premiums (including mutual insurance calls) in respect of the ship.
  • Commissions, brokerages, or agency fees in respect of the ship.
  • Disputes as to the ownership or possession of the ship.
  • Disputes between co-owners of the ship as to its employment or earnings.
  • A mortgage or a “hypothèque” or a charge of the same nature on the ship.
  • Disputes arising out of a contract for the sale of the ship.
• Conditions for Arrest: Article 3 outlines the conditions under which a ship may be arrested:
  • The claimant must have a maritime claim against the owner of the ship.
  • In certain circumstances, a ship other than the one in respect of which the claim arose can be arrested (sister ship arrest), provided the owner of the ship at the time the claim arose was the owner of the other ship when the arrest is made.
• Release from Arrest: Article 5 specifies the conditions under which an arrested ship must be released. This generally occurs when sufficient security (e.g., a bank guarantee or other acceptable form of security) is provided to the court.
• Wrongful Arrest: Article 6 provides safeguards against wrongful or unjustified arrest. If a ship is arrested without reasonable cause or excessive security is demanded, the arresting party may be liable for any loss or damage suffered as a consequence.
• Jurisdiction: The Convention does not confer jurisdiction on the courts of a contracting state to adjudicate the underlying maritime claim. It solely deals with the procedure for arresting a ship to provide security for a claim that may be pursued in a competent jurisdiction.
• Application to State-Owned Vessels: The Convention generally applies to state-owned vessels engaged in commercial activities.

Key Objectives:

• Harmonization: To standardize the rules governing the arrest of ships internationally, reducing inconsistencies and uncertainties.
• Claimant Protection: To provide claimants with an effective means of securing their legitimate maritime claims.
• Shipowner Protection: To prevent the arbitrary or unjustified arrest of ships and to ensure their prompt release upon provision of adequate security.
• Efficiency: To streamline the process of arrest and release, minimizing disruption to maritime trade.

Significance:

The Arrest Convention is a crucial legal instrument in international maritime law. It provides a predictable and balanced framework for dealing with ship arrests, which are often necessary to ensure that maritime claims can be effectively pursued and satisfied. By harmonizing the rules, the Convention contributes to legal certainty and facilitates international trade and shipping.

It’s important to note that while the 1999 Convention is the current international standard, some states are still party to the earlier 1952 Arrest Convention, which has some differences in scope and detail. However, the 1999 Convention is generally considered to be more modern and comprehensive.